SAN FRANCISCO--After decades of being criticized for producing luxury items, Apple Computer is aiming squarely at the mass market with a new budget PC unveiled Tuesday.

Apple CEO Steve Jobs introduced the new Mac Mini during his keynote address at the Macworld Expo here, promising the machine would help further expand Apple's audience beyond the Mac faithful.

Jobs also confirmed several other high-profile debuts--including a tiny flash memory iPod--that have been grinding through the Mac rumor mills, prompting the secretive company to sue the alleged source of several information leaks.

Many of the reports turned out to be true, with Jobs beginning the cavalcade of products by announcing the Mac Mini and the flash memory-based iPod.

The Mac Mini is a tiny machine with a processor, hard drive and optical drive--you supply the monitor, mouse and keyboard. Jobs said the package will settle long-standing complaints that Apple extracts too high a premium for its products. "This is the most affordable Mac ever," Jobs said. "People who are thinking of switching will have no more excuses."

The new Mac Mini will go on sale Jan. 22 and will cost $499 for the base model, or $599 for one with a bigger hard drive. The device marks one of Apple's boldest moves yet to expand PC sales beyond a loyal but limited market of Mac addicts. The iPod and Apple's iTunes music store have been responsible for a dramatic surge in Apple revenue, but to date there has been little evidence that those products have done anything for Apple's PC business.

The Mac Mini will come with Panther, the latest version of Apple's OS X operating system, plus the iLife collection of digital media applications. Like almost all Mac products, it's designed for style as well as function. "This is a very robust computer, but it's very, very tiny," Jobs said.

The new breed of iPod went on sale Tuesday in two versions--a 512MB model (enough memory for about 120 songs) for $99 and a 1GB version for $149.

Both models work with a Mac or PC and have no display screen for navigating through a music library. Instead, Apple expects the players largely will be used in "shuffle" mode that serves up songs in random order.

"iPod users discovered a new way to listen to their music...shuffle," Jobs said. "With shuffle you don't have to find your music; it's shuffled up for you."

The new flash memory-based iPod Shuffle is Apple's latest bid to expand its portable music player business to more downscale consumers, following the wildly successful launch of the iPod Mini early last year.

In the heat of the annual Mac Expo in San Francisco, Apple has pushed the ante up to another tier. With special kudos to the vast popularity of the Ipod and the Itunes Music Store, they have released yet another innovative product called the "Ipod Shuffle". This is a smaller representation of the original Ipod, but it carries data or stores music on a flash drive memory, rather than a physical hard drive.

Moreover, it is unbelievable that Apple is now targeting the home consumer. I guess there has been some deep synergy going on between them and Hewlitt Packard (HP) in that regards. The bountiful "Mac Mini" is now debuting at $499 and pack great features such as 1.25 GHZ G4 processor, up to 80GB hard drive, 256mb of ram and a slot loading CD-R/DVD-ROM drive.

Last but not least, Apple is renowned for innovation, and there is more to come with the new market share that they have just regained with the "Ipod Phenomenon".

alright, i read elsewhere that the new ipod is smaller than a pack of gum. since this thing works in shuffle mode, how 'bout making it the same form-factor as an audio cassette, then let me plug it into my truck's cassette player to listen to music? give me one power wire that i can run directly to the power plug (aka the politically incorrect "cigarette lighter) and that would be cool!

I can't effectively express my displeasure with Apple's decision to release this thing without Gigabit Ethernet. It makes no sense, and would cost them absolutely ZERO to use a Gigabit-based Ethernet ASIC instead of a classic 10/100mbit one.

Bizarre decision, which makes me wonder if a "new" mini Mac will come out in a few months from now -- much like what Apple did with the re-designed iMacs, and their Powerbooks.

The Mac mini is clearly aimed at the consumer market (though it will find its way into many closets I'm sure) - as such, it has a 10/100 ethernet just like the iBook and iMac. It's one of the features that isn't available until you move to the pro lineup.

I agree that it would be close to zero cost to implement, but they use it (and montior spanning, and expandability) as distinguishing features to move people up-line.

Very cool design. I agree that it is not much of a bargain when you add all the needed gear in. I think it is great for Mac lovers, however, one could purchase a more capable PC for the same amount of cash.

This mac was designed specifically to target those consumers who want to use their existing monitors. Quite frankly, if you want a mac with a monitor, keyboard and mouse, then buy one.

With the DVI connector, and include bluetooth and airport, you can use this mac to work from your HDTV (if it is equpped). I have a funny feeling this was and is in the minds of many. However, if you have an expensive monitor already, you don't have to get a new one anyway.

I was so excited with the news of the new Mac Mini. As I searched the web for more information on it, I came accross an old friend.... "gratis-networks" . They're doing it again! Except this time... they're giving away FREE MAC MINI computers! WOW! You HAVE to check this one out! <a class="jive-link-external" href="http://www.FreeMiniMacs.com/?r=13956630" target="_newWindow">http://www.FreeMiniMacs.com/?r=13956630</a> Pretty cool huh? B-)

The Mac mini is good news for all personal computer users, because it increases competition in the mass market.

This is the first time in years that Apple has offered a computer at a price that the average consumer is willing to pay. The old iMac (with the conventional, not flat panel, monitor) was the last example. Its price hovered around $1000, which was appropriate for a basic personal computer in the late 1990's. Later iMac designs -- and even the eMac -- were too expensive to be a factor in the mass market. As companies like Dell were driving entry-level PC prices down, Apple was adding new features and raising the price of its entry-level offering. But at $500, the all-new Mac mini meets discount PC's head-on.

Obviously, current and future Macintosh users will benefit from this new, low-cost option. I predict that PC users will also benefit.

Now that Apple's iLife suite is available with a $500 Mac mini, PC manufacturers will put pressure on their operating system supplier (Microsoft) and their utility software suppliers (various). There's no feature deficit in the software that comes with a typical multimedia PC (media player utility, DVD/CD burner utility, audio editor utility, video editor utility, TV recording utility), but the software components don't have consistent user interfaces and don't always work well together. This will change.

And now that Apple's well-regarded technical support is available with a $500 Mac mini, PC manufacturers will have to improve their own support services. However, Apple's consumer satisfaction ratings will decline a bit, as the company begins serving users who lack the computer experience, the self-help financial resources, and the brand allegiance common in people who today spend $1500+ on a typical Macintosh. Apple has no recent experience with mass market computer support.

I do see one longterm drawback for consumers: the entry of the Mac mini will encourage them to worry even more about form and even less about function. Apple's promotional literature (<a class="jive-link-external" href="http://www.apple.com/macmini/design.html" target="_newWindow">http://www.apple.com/macmini/design.html</a>)criticizes the "Frankenstein machines" that PC manufacturers "slap together". Small, pretty components cost more, don't perform as well, and are harder to upgrade. For example, the Mac mini is built around a laptop DVD/CD drive ("'slim' form factor"). The desktop DVD/CD drives ("5.25-inch half-height form factor") found in discount PCs are faster and cheaper. When it's time to upgrade, replacements are also much easier to come by.

Overall I'm impressed with the Mac mini and glad to see a new choice in the personal computer marketplace.

Paul Marcelin-SampsonSanta Cruz, California, USA

Note: When I use the abbreviation "PC", I'm referring specifically to IBM PC-compatible personal computers. When I use "personal computer", spelled out, I'm referring to all types, including the Apple Macintosh.

Apple has realized that people don't want to be at work or working 24/7. (Actually, they were never really interested in being the office PC exscept for a few years when Scully was there and they were losing their way.)

"Where is the innovation? All i see are products that have been released to the market already. Can't apple come up with something new?"

The innovation is making poor products in market better. They are kind of like the BASF of the computer world, except the do make the product. By the way, Apple has come up with many many new things. Heck just look at the iPod's scroll wheel. They were the first on a music player.

Apple has led the way for innovations in this market place since its inception. I find it totally incredible that someone could think they have been doing less. Perhaps you do not have the ability to see the road ahead, and the steps that it takes to make the journey. That's OK.

But if you think that them producing a more affordable computer, that still has the quality of their typical product line isn't innovative, then it may never be possible for you understand.

About two months ago, I was so sick &#38; tired of the constant attacks, phishing schemes,etc., that I went to look at an Apple. I always liked the look &#38; feel of the OS, Browser, etc. The only thing that was holding me back were two things: 1. The price, &#38; 2. Eating crow. I have in the past blasted those who slammed M$ users as "Appleheads" {To those whom I may have insulted, I appologize}.Now that I've had my share of eatin' crow &#38; humble pie, I have been planning to purchase a Mac. The problem for me was the price. I was considering a pre-owned model {ok, USED}.

Now I can get a full-featured NEW Mac for under $500!I wanted Apple to do something like this when the first PC's were offered @ under $800.

I guess now is as good a time as any, &#38; I have no where to go, except my nearest Apple reseller.

First I must say i was REALLY impressed with the looks of this little boy wonder. After a closer look if it would fit my use (which is pretty general) there were a few shortcomings that came to my attention that I'd like to mention:- Only 2 USB connections. Although you have the option of Bluetooth, for people who still like to plug the old-fashioned way 2 connections seems a bit little, three as with the iMac would have been more appropriate- No Audio in!! if you want to record audio with your miniMac (why didnt they call it that way?) you have to add (and pay for) a special USB plug (there goes one extra USB...)- the power supply is external. No wonder it's that small with the power supply almost as large as the miniMac itself. If they had made it a bit larger they could have integrated the supply, making it a much more mobile piece of equipment- video RAM is a bit on the small side with 32MB, but alas, they can upgrade that in the future.

Ok, I'll shut up now and look at those spunky pictures again, no need for adult material...

Re: 2 USB connections) Yeah, that seems a little on the skimpy side. Would've liked to see another one or two USB ports on the front (or side, I suppose). Maybe another FW port too.

Re: No Audio in) Most PCs in that price range don't have audio in standard either. Usually have to add a sound card.

Re: Video RAM) Better 32MB than integrated graphics which steals memory from the main RAM. 64MB would've been nicer but maybe more cost and the average user wouldn't necessarily need it anyways. More VRAM is more for 3D games than web surfing, email, and such.

But it does come with iLife '05 free, which has no real comparable product in the Windows world.

Someone asked "why not call it a MiniMac?" Well, because they have the iPod mini, and now the Mac mini.

For more ports. If you have an apple keyboard, it has a USB por on the left and right of it (for whichever hand you use of ryour mouse) to plug the mouse into. That leaves one USB port open, and even then you can put a four port USB hub on that.

One firewire port because there aren't many devices that use firwire, and again, you can always put a $20 firewire hub on there.

This thing is smaller than Nintendo's Gamecube for God's sake. Which means more desktop or floor psace for you to have to work with. Audio in? Most audio in devices are now firewire or USB compatible (or both)

The iPod Shuffle can play in shuffle or in regular modes, and the price point is cheaper, with double the memory and it also has a rechargeable battery inside of it. Not bad my friends. Not bad at all.

It maybe able to be a PC but its NOT a PC. Its is Apple's bid for space in your living room next to your TiVo, your cable box, your game console and your remote.

It is Apple's way of differentiating in design and by design in a way thet Microsoft can only dream of. Think of selling X-Box on steroids. Microsoft may have won the battle for the office (and made Bill Gates the richest man on the planet, [proof that he overcharged,] :-) but the Mac will win the battle for the living room.

After all most home probably have an apple or two in their 'fridge already. Apple's is pro-active and pro-design.

With wireless networking, CD/DVD playing, CD burning for iTunes playlists, conectivity out the wazoo with other Macs and with all the devices out there, this things looks to become AWESOME.

You say that this new Apple is meant to go next to my Tivo and cable box? What, exactly, does it bring to the table that's worth $500? Can't initiate audio/video apps to play on my plasma and/or audio equipment (keyboard/mouse optional - and who wants those 'ugly' PC keyboards/mice in their living room: the whole point behind buying an Apple over a PC is style!) Can't surf the web - unless your audio/video setup happens to be in front of an ethernet jack (wireless is optional.)Doesn't have a built-in dock for an iPod so you could play your iPod music on the stereo (the one feature I'm interested in!)

So, unless you spend an additional arm and leg, you pretty much have a zero-capability (it isn't even a good door stop!) piece of equipment in your living room. But at least it looks cool.

Personally, I wouldn't buy this for myself, but I would buy it for my relatives, who are much older and don't use their computers for anything but the Internet and storing pictures. A linux system would work too, but the Mac mini looks way better.

Recently, I tried to buy the newest iMac that Apple offers. They use Juniper Bank to finance sales. Juniper turned me down for whatever reasons so I bought an 8400 series PC from Dell. Apple just lost a loyal user. Thank you.

Being lapse on the health of your own credit rating is very, very serious. Using at as an excuse to find a reason to blame a corporation is not only negligent on your part, but just plain being ... well, you know the rest of that.

Seriously, if you don't know why you were turned down, you NEED to investigate it. It could be erroneous information being filed about you, or even identity theft. This is a serious matter, not a computer coporation being "mean" to you.

I was so excited with the news of the new Mac Mini. As I searched the web for more information on it, I came accross an old friend.... "gratis-networks" . They're doing it again! Except this time... they're giving away FREE MAC MINI computers! WOW! You HAVE to check this one out!<br> <a class="jive-link-external" href="http://www.FreeMiniMacs.com/?r=13956630" target="_newWindow">http://www.FreeMiniMacs.com/?r=13956630</a> <br> Pretty cool huh? B-)

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